Ather Energy IPO: Price Band, Financials, Key Dates, GMP And More

Bengaluru-based electric two-wheeler company Ather Energy Ltd.'s initial public offering is scheduled to open on April 28, marking India's first mainboard primary market offering in the current fiscal.

The price band for the IPO has been set in the range of Rs 304 to Rs 321 per share. The market value at the upper end of the price band is Rs 11,955.7 crore, as per NDTV Profit's calculations. Bids can be made for a minimum of 46 shares, and then in multiples thereof.

⁠The offer consists of both an issue of fresh shares worth Rs 2,626 crore, and an offer for sale worth Rs 354.8 crore, according to the red herring prospectus. The OFS will entail sale of equity by company's founders and promoter selling shareholders Tarun Mehta, Swapnil Jain, among others.

Axis Capital Ltd., HSBC Securities and Capital Markets (India) Pvt., JM Financial Ltd., and Nomura Financial Advisory and Securities (India) Pvt. are the book-running lead managers to the issue. MUFG Intime India Pvt. is the registrar to the offer.

The equity shares are proposed to be listed on both the BSE and National Stock Exchange.

• Issue opens: April 28.

• Issue closes: April 30.

• Issue price: Rs 304-321.

• Offer for sale: Rs 354.8 crore.

• Fresh issue: Rs 2,626 crore.

• Total issue size: Rs 2,980.7 crore.

• Lot size: Minimum 46 shares, and then in multiples thereof.

Ather Energy is a pure play Indian electric two-wheeler maker, and also provides associated product ecosystem, comprising software, charging infrastructure and smart accessories, all of which are conceptualised and designed by the company.

Apart from in-house battery packs, portable chargers and motors, other key E2W components, such as motor controllers, transmissions, vehicle control units, dashboards, DC-DC converters, harnesses, and chassis are designed in-house by the company and outsourced to suppliers for manufacturing.

The company sold 1.07 lakh and 1.09 lakh E2Ws in the nine months ended Dec. 31, 2024 and fiscal 2024, respectively.

The company aims to utilise Rs 927.22 crore towards capital expenditure for its Maharashtra E2W factory, alongside Rs 40.03 crore for repayment of borrowings, Rs 750 crore for investment in R&D and Rs 300 crore in expenditure towards marketing.

The company reported a 28.30% rise in revenue at Rs 1,578.9 crore in the first nine months of the financial year ending in 2025, from Rs 1,230.4 crore in the same period of the previous fiscal. Net profit slipped 25.60% to Rs 577.9 crore. The company reported an Ebitda loss of Rs 408.5 crore in the same period.

As of Feb. 28, 2025, the company's debt pile stood at Rs 533.6 crore.

The EV player's listed peers include Hero MotoCorp Ltd., Bajaj Auto Ltd., Ola Electric Mobility Ltd., TVS Motors Co. and Eicher Motors Ltd. Here is how its performance stacks up against them:

• Other than the batteries manufactured in-house, the company relies on external suppliers for all other EV components used in assembling its electric two-wheelers. Any loss of key suppliers or disruptions in component supply could impact operations.

• The company has incurred losses since its inception. In fiscal 2024, it recorded stagnant revenue growth, with a loss before tax of Rs 1,059.7 crore and Rs 577.9 crore in the nine months ended Dec. 31, 2024. There is no assurance of cost efficiency or future profitability.

• The company's growth is dependent on the demand for and adoption of electric two-wheelers. Slower-than-expected market development could adversely affect its business and financial performance.

• Sales are heavily concentrated in South India, exposing the company to heightened risks from natural disasters, regional instability, and regulatory changes in that region.

The grey market premium of the Ather Energy IPO is Rs 5 as of 06:31 a.m. on April 25, according to InvestorGain. This implies shares of the company will likely list at Rs 326 apiece, indicating a 1.56% premium to the upper end of the price band.

It should be noted that GMP or grey market price is not an official price quote for the stock and is based on speculation.